Construction is expected to begin this summer, and the hotel is slated for completion in the summer of 2014.

Pro Con Inc., an architecture, engineering and construction management firm - and an entity related to SXC Prescott Street Hotel - will be the general contractor.

Under the terms of the TIF, that tax exemption for the property will average 45 percent over seven years.

With a TIF, the owner pays 100 percent of the base assessed valuation of the property, plus a percentage of the increase in new value generated by the new construction.

During the first year (fiscal year 2015) of the TIF, the developer will pay taxes on the base value plus on 25 percent of the new value. That translates into a 75 percent tax exemption on just the new construction.

The exemption will then decrease from 65 percent in the second year of the project to 15 percent in the final year.